of the Investment, Banking and Audit Committee, City staff, and/or professional investment advisors, economic circumstances and/or the interest rate environment warrant an alternative investment approach. Specific instruments may be purchased to meet identified and scheduled capital expenditures. J. Prohibited Investments The following investments are prohibited by City investment staff; provided, however, that this provision shall not be construed as a prohibition on investment in the LAIF, OCIP, and CAMP investment pools: 1. Any form of leveraging or purchase of derivative instruments 2. Any investment issued by the Government National Mortgage Association 3. Any mortgage pass-through security, collateralized mortgage obligation mortgage-backed or other pay-through bond 4. Any inverse floaters 5. Any range notes 6. Any interest-only strips K. Authorized Securities Broker/Dealers The City shall maintain a listing of financial institutions, which have been approved by the City Council for investment purposes. All approved securities broker/dealers shall be primary dealers designated by the Federal Reserve Bank of New York. Before engaging in investment transactions with an approved broker/dealer, the City shall have received from said firm a signed certificate form. The document will certify that the firm has reviewed the City's Investment Policy and agrees to disclose potential conflicts or risks to public funds that might arise out of business transactions between the firm and the City. All financial institutions shall agree to undertake reasonable efforts to preclude imprudent transactions involving the City's funds. L. Use of Professional Investment Managers The City Treasurer, with approval from the City Council, may employ the services of professional investment managers to assist in the management of the City's investment portfolio. Such managers may be granted the discretion to purchase and sell investment securities in accordance with this Investment Policy. Such managers shall have: (1) an established professional reputation for asset or CITY INVESTMENT POLICY 6 of 8 COUNCIL POLICY ADOPTED 6/4/2024 132